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US economy stalls as slump in housing market takes hold

The US economy suffered an abrupt slowdown over the past three months, with growth dropping to its weakest in more than three years as it succumbed to the toll from a slumping housing market.

Much worse than expected figures showed that US GDP grew at a modest annualised pace of just 1.6% in the third quarter.

That was sharply down from 2.6% in the previous three months and the scorching 5.6% pace set in the first quarter.

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